Fino Payments Bank, once riding high on regulatory approval, now finds itself in a whirlwind of crisis following the arrest of CEO Rishi Gupta and allegations of GST evasion. The bank’s stock plummeted amid concerns over governance and leadership, highlighting a rapid decline in its fortunes.
At the beginning of the year, Fino Payments Bank received a boost when the Reserve Bank of India approved Rishi Gupta’s reappointment as MD and CEO, causing a surge in stock prices. However, this positive momentum quickly reversed when Gupta was arrested on charges of GST evasion, accused of involvement in a scheme to funnel funds from illegal online gaming platforms through shell entities associated with Fino.
The investigation pointed to three program managers who allegedly facilitated the illicit fund routing through shell merchants, circumventing GST payments. Fino Payments Bank has distanced itself from the allegations, asserting that it had already blocked real-money gaming merchants in 2025 and that the implicated entities represented a small fraction of their operations.
Despite the turmoil, Fino Payments Bank remains adamant that its operations comply with regulations and that the CEO’s legal issues are not reflective of the bank’s practices. The incident underscores the challenges of maintaining trust and integrity in the financial sector, with implications for the bank’s reputation and future strategies.
Source: Inc42 Media